The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1887-12-07
THE NATIONAL BANKS.
Annual Report OF the Comptroller of Cur
rency and his RecOmme ndations

rency and his EsecOmm endattons
WASHINGTON, December The twenty.
ffth annual report Of the Comptroller of
the Currency, now in print, Will be pre-
sented TO Congress on the first day of its
session. The report shows that the total
number of national banks organized up
to OCTOBER 81 is 3, sos, of which 625 have
gone into voluntary liquidation, 1l9 have
failed, leaving in operation at that date
o,O61. OF this number 3 049 furnished re-
ports OF condition at the date OF last call,
October 5, of which a complete abstract
has been published. The total number of
new banks formed during the last year is
225; the total number closed during the
year is SO. of which 25 went into voluntary
liquidation and eight failed. The new
banks comprise five N New England
thirty-three in the Middle States, fifty in
the Southern States, 107 in the Central
States and thirty in the Western States
and Territories. OF the failed banks one
was in New England, two in the Middle
States four In the Southern States, and
one in the Central States.
The gross increase in National Bank
capital during the year amounts to $780,
S94, 775, OF which S, SOS 005 represents an
increase of capital by banks existing
November l, 1886. There has been, how
ever, decrease of capital of s. 800, 45O, of
which 81, OS7, 450 is the aggregate capital
of the thiriy-tneee banks which went into
voluntary liquidation and failed and the
remainder represe nts decrease OF clpital
by banks still in operation. The net in
cease Of pital for the year is, therefore
$3O,572 325. On the other hand, there is a
net decrease of S5O, 495 $50 in the circula-
ton represented BY bonds. The decrease
resulting from the surrender of circulation
by banks still in operation is $57,770,475,
and the decrease caused by banks going
into voluntary liquidation and failing is
81 pa $50, making gross decrease of S59,-
044, S55, Offset by total increase of S.
$40 265, which consists of an increyse by
the formation of new banks of 81 592, 090,
an increase OF circulation by previous ex-
listing banks to the amount of S., 957 ,175.
The affairs OF five failed banks have been
closed during the year, including among
them one of those which tailed during the
year. In four cases out of the five the
creditors have received payment of princi-
pal and interest in full and there has been
q balance of assets transferred to an agent
of the stockholders in the other case, that
of bank which failed in 1879, the total
dividends amount to 81 per cent. In each
case detailed account is given of the
cause Of failure and the progress made
in liquidation. The total amount of
money paid in dividends during the past
year is $2.106 203 Al; the whole amount
paid 10 creditors of insolyent banks since
the system has been IN operation is S29,-
AL, 9S6 upon proved claims amounting to
$40 93s, 3SS; the total assessments on stock
holders, 50, 945, $50, of which gross collec-
tiOns have been 81 632 500.
VeIy full statistics have been collected
about The State banks, saving banks, loan
ard trust companies, and private banks
aud bankers throughout the cour try. The
x1a o.,
amendment to the laws in the form of
code OF revising and consolidating all ex.
listing laws, with anumber of changes, each
of which is ully explained and the rea-
sons for ii, are set forth at considerable
length. The most important of. the
changes recommended is that the mini
mum amount OF bonds 10 be deposited as
security for the circulation shall be 10 per
cent. of the capital OF banks of not over
$3.50, 900, and $4,000 for banks of which
the capital exceeds $3.50. 600; also that the
semi.annual duty on circulation be here
after charged only on the amount issued
upon bonds deposited in excess OF tue
minimum amount as above. He also
recommends that the National bank notes
be counted as part of the lawful reserve
OF banks.
The existing provisions of the law, as to
the responsibility of officers and directors
OF banks, are modified so as to avoid here
tofore existing obstacles to their prompt
and certain enforcement. The restriction
upon banks as to making loans in excess
Of 10 per cent. Of capital to any one party
is modified in respect to loans upon col
lateral security, aud the total limit is
raised to 20 per cent. OF capital and sur
plus The provisions as to reserve upon
deposits are modified so as rot to include
Government deposits in the amount upon
which reserve is to be held. The provision
as to State taxation Of National banks is
also modified.
The proposed code has been transmitted
to every Senator and Representative, with
a codification of all existing laws on the
subject arranged in sections palallel with
those Of the proposed code, and accompan-
led by letter explaining each of the
more important changes and the reason
therefor.